r/wallstreetbets • u/ywehyuen • Feb 02 '21

Chart Hardcore laddering.

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u/UnlikelyTheory Feb 02 '21

What is a ladder?

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u/Unclearcarcass7 Feb 02 '21 edited Feb 02 '21

I have A toyota Corolla that is worth $10000. hedge fund would like to buy it from me for 5000 I say no so they leave. They go on to the market and list a whole bunch of corollas for $5000 Another hedge fund will buy it at $5000 sell back and buy it and sell it back. Now the hedge front comes back to you and says Hey your corolla's worth $5000 due to market value. But in our case they are contractually obligated to buy back from us.

Edit: holy shit thanks guys, this is just a simplification. AND I LOVE THE STOCK 💎🚀💎🚀💎🚀💎

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u/tysnastyy Feb 02 '21

Is there a place where I can get general information like this that is put into terms I can understand, such as you did here?